Question

Worthless asset is debited to capital accounts in their –

Answer 1

Explanation:

Worthless asset is debited to capital. accounts in their - Profit Sharing Ratio. Capital Ratio

Answer 2

Answer:

Profit Sharing Ratio

Explanation:

• Profit sharing ratio is the ratio in which the old and new partners concur to divide the profit and loss proportion in the future following the incorporation of the new partner.
• To revalue assets and liabilities, a revaluation account is formed.
• All decreases in the value of assets and increases in obligations are debited from this account, while any increases in the value of assets and liabilities are credited.
• The outcome of the revaluation—profit or loss—distinguishes the two parties.
• This profit and loss is distributed according to the previous profit-sharing ratio among the old partners' current capital accounts.
• Hence, the answer is Profit Sharing Ratio.

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